FCR 1 1

Office of the President
March 4, 1997


Members, Board of Trustees:

                    SALE OF THE SOUTH FARM. TRACT A

Recommendation: that the Board authorize the Administration to accept the high bid of
$18,365,400 submitted by JDN Development Co., Inc. of Atlanta, Georgia, for Tract A
(containing 42.96 acres) of the University's South Farm; further, that the Administration
be authorized to finalize the sale within 30 days after the Board's approval of the bid.

Background: At the September 17, 1996, meeting of the Board, the Administration was
authorized to conduct a sale of Tract A of the South Farm. Formal appraisals of Tract A
were obtained from two qualified firms. The bid by JDN Development Co., Inc. exceeds
the highest of the two appraisals and, accordingly, has been found to be acceptable to the
Administration. JDN Development Co., Inc. has been so advised. Board approval of the
bid is required before the sale can be completed.

The Board of Trustees adopted in September 1985 guidelines for the disposition of real
property held by the University. These guidelines authorize the Board to dispose of
lands that are no longer suited to serve the mission of the University.

The guidelines further require that proceeds from the sale of real property represent a net
gain to the institution. Representatives of the Administration have met with the
Secretary of Finance and Administration and have received his approval to proceed with
this sale by the University.

Proceeds from the sale of Tract A will be used by the University for the construction of a
Plant Sciences Building for the College of Agriculture in accordance with the "Twenty-
First Century Plan," thus assuring that these funds will be used to advance research in
support of the College of Agriculture. The remainder of the south farm, currently being
used by the College of Agriculture for horticulture research, has been identified as the site
for future development of a campus for Lexington Community College.



Action taken:       Approved      L Disapproved        J Other